A Cost Management Control Procedure for Initial Training in Surface Ship Acquisition Programs. Final Report.

Nutter, Roger V.; And Others

A study was conducted to develop a cost management control procedure to assist Navy managers in making decisions about initial training development and implementation in surface ship acquisition programs. Objectives were (1) develop and illustrate a cost management control procedure for centralized collection, storage, and control of cost data for commercially developed initial training programs; (2) develop an instrument for cost data collection compatible with existing training requirements directives and proposed cost management control procedures; and (3) identify and examine noncost management considerations affecting procedures for selecting training alternatives. A subjective rational approach, based on case history analysis, was used. Data bases were established from cost data derived from training device acquisition programs and noncost management data derived from major system equipment acquisition programs. Nine training device course cost proposals were selected for in-depth analysis. A computer-based cost management control procedure was developed to assist in selecting the most efficient initial training alternative, preparing initial budgetary estimates, and performing contractor cost proposal evaluations. (Appendixes include illustration of a cost estimation procedure for Navy developed initial training, summary of cases studied, data collection instrument for contractor developed training course, cost management control procedure data summary, and cost data for various initial training courses.) (Author/CSS)